Vietnam: Imported Scrap Market Observes Few Trades
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SteelMint learned from market participants that imported scrap market in Vietnam has witnessed limited trades amid high offers. Offers from its largest supplier - Japan remained high as compared with other origins, although prices have moved down by USD 5-7/MT on W-o-W basis in limited deals heard last week.
Offers for Japanese H2 were at USD 351-356/MT, CFR Vietnam as against the last report of USD 355-360/MT, CFR. Despite firm domestic scrap prices, Japanese export offers seem to have pressurized on sharply declined demand and increasing inventories with suppliers.
A bulk cargo comprising 18,000 MT of Japanese H2 heard to have fetched decent price of USD 351/MT, CFR Phu My port. However, H2 export offers in Kanto region still assessed at JPY 36,500-37,500/MT, FoB (USD 327-335) Japan.
Offers for Hong Kong origin containerized HMS 1&2 (50:50) stand in the range of USD 348-352/MT, CFR Vietnam which have remained stable on W-o-W basis. In few deals confirmed for Hong Kong origin HMS 1&2 (50:50), two cargoes were sold at USD 348/MT, CFR. A deal sold at USD 350/MT, CFR Phu My and another deal heard at USD 351/MT, CFR Hai Phong.
Vietnamese scrap market observed limited deals as most of the steel mills remained slow for purchasing ferrous scrap in last one weeks' time. However, couple of major steel mills were slight hopeful for restocking and showed interest in buying at current levels.
USA containerized scrap offers move up on tight supply - Offers for USA origin containerized HMS 1&2 (80:20) assessed at around USD 350/MT, CFR as against USD 340-345/MT last week. While Shredded scrap assessed at around USD 367-370/MT, CFR Vietnam as against USD 360-365/MT earlier. Amid stricter inspection buyers seemed more interested in containerized scrap from USA over bulk cargoes.
Vietnam's ferrous scrap imports likely to cross 4.5 MnT in CY18 - According to customs data maintained with SteelMint, during first eight months of CY18, Vietnam has imported 2,822,400 MT ferrous scrap, up 13% Y-o-Y as against 2,499,070 MT recorded during Jan-Aug'17. Sharply rising EAF steel output in Vietnam has resulted in sharp growth in scrap imports and now it is expected that imports may cross 4.5 MnT mark in CY18.
